President Obama and The Medicare Donut Hole!!

From SeniorJournal.com

President Obama Promises Doughnut Hole in Medicare Drug Program Will Get Smaller
President says agreement has been worked out with pharmaceutical industry for 50% discount
June 22, 2009 – President Barack Obama says he will reduce the size of the infamous “doughnut hole” in Medicare Part D, the Medicare prescription drug program, that has placed many senior citizens in the position of not being able to buy prescribed medicines. He made the announcement today and said an agreement had been reached over the weekend with the pharmaceutical industry.
The President said, “… we reached an understanding that will help close the notorious "doughnut hole" in Medicare Part D. This is a significant breakthrough on the road to health care reform -- one that will make the difference in the lives of many older Americans.”
Obama said the change will be part of the health care reform he expects Congress to enact this year. It will call for Medicare beneficiaries, whose spending falls within this gap – the doughnut hole, will now receive a discount on prescription drugs of at least 50 percent from the negotiated price their plan pays.
“A discount of at least 50 percent in the coverage gap will mean that more older adults and people with disabilities will be able to continue taking their medicine as prescribed by their doctor instead of choosing which drug they can ‘afford’ to take, a choice that can endanger the lives of people with diabetes and heart ailments, and other chronic conditions,” said a statement issued by Joe Baker, president of the Medicare Rights Center.
“As always, the devil is in the details. We look forward to working with President Obama and the Congress to making the promised discount most useful.”
As the President explained, “The ‘doughnut hole’ refers to a gap in prescription drug coverage that makes it harder for millions of Medicare beneficiaries to pay for the medication they need.
“The way the program is structured, Medicare covers up to $2,700 in yearly prescription costs and then stops, and the coverage starts back up when the costs exceed $6,100. Which means between $2,700 and $6,100 folks are out of luck.
“And this gap in coverage has placing a crushing burden on many older Americans who live on fixed incomes and can't afford thousands of dollars in out-of-pocket expenses.”
The Medicare Rights Center believes the immediate assistance provided by the discount complements the proposal to completely phase out the Part D doughnut hole included in the health reform legislation drafted by the chairmen of the three House committees, according to the statement by Baker, president of the MRC.
“Full coverage of both brand-name and generic drugs is the best way to ensure people with Medicare can afford the medicines they need,” Baker added.
Obama said the agreement was reached this weekend in meetings involving Senator Max Baucus (D-Mont.), Chairman, Senate Finance Committee; members of the administration and representatives of the pharmaceutical industry.
He complimented Chairman Baucus for “doing an outstanding job leading the finance committee on this issue” and for finding “a way to bring down costs of prescription drugs for America's seniors.”
The President said as he traveled around the country “seniors would constantly be coming up to us and saying, how do we deal with this extraordinary burden? And as a consequence, you'd have seniors who would be taking half their medication, even though the doctor said that is not going to be as effective; you are putting your life at risk. They had no other choice.”
The President concluded by commending the House for the health care reform bill. “I might note,” he said, “that protects seniors and has received the support of the AARP.”
He promised to continue to work closely with the relevant chairs in the House and the Senate, and leaders like Senator Chris Dodd and Senator Baucus, and with members of both parties “who are willing to commit themselves to this critical task.”